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Nordic venture capital outperforms public markets

  • Published 26/11/2015
New index indicates that the Nordic venture capital market has given better returns than public markets and other venture capital markets by producing several high value companies since year 2000.

The Nordic Venture Performance Index 2014 shows indicates that the Nordic venture capital market has delivered better returns than selected Nordic public market equivalents and the Nasdaq 100 between 2000 and 2014.

 

By analysing 8 venture capital firms, 26 funds and 515 portifolio companies, the index indicates that the Nordic capital market has had a net return of 13.2 percent. In comparison, the Nordic Small Cap Index and the Nasdaq 100 had net returns of 12.8 and 11.4 percent respectively.

 

Analysis also indicates that the final net returns will be substantially higher when the funds have run their life cycles, giving returns higher than 20 percent. Three of four funds give positive returns.

 


A joint Nordic effort


The Nordic Venture Performance Index 2014 was released late November by the Nordic Venture Network, a network of nine leading technology venture capital firms from the Nordic countries. Together, they control investments worth more than 2.5 billion euro in over 500 companies, with 100 professional investors.

 

Nordic Innovation has funded the index project under the Nordic High Growth Entrepreneurship Initiative.

 

– Both financing and structure for the cooperation around the index have been vital inputs from Nordic Innovation in the project. From our perspective, this is an example of great private and public cooperation with the clear purpose to attract further financing for Nordic innovative companies going forward, says Erik Johansson, executive management of the Nordic Venture Network.

 

 

Nordic startups are profitable


– It’s great news that we have been able to create the first robust and credible index for the Nordic VC market, says, Jari Mieskonen, chairman of Nordic Venture Network and managing partner of Conor Venture Partners, in a press release.

 

Although one might expect the good results to be on the account of few and large successes, the analysis shows that a large number of companies have contributed to the the value creation. The 23 most successful companies account for 60 percent of the value creation.

 

– The analysis unveils good overall performance for Nordic venture capital and it also shows that a large number of Nordic startup companies have contributed in the value creation, says Mieskonen. 

 

 

 

The Nordic Venture Performance Index 2014 in the media:

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Nordic Venture Network

The Nordic Venture Network consists of the following partners:

 

 

  • Conor Venture Partners 
  • SEED Capital
  • Creandum
  • Sunstone Capital
  • Northzone
  • Verdane Capital
  • Open Ocean
  • Alliance Venture 
  • Viking Venture
  • Frumtak Ventures
  • Televenture

Contacts